In a remarkable twist to one of the U.S. Navy’s largest corruption cases, a federal judge in San Diego on Tuesday dismissed the felony convictions of five retired military officers who had admitted to accepting bribes from Leonard Glenn Francis, the Malaysian contractor famously known as “Fat Leonard.” The dismissals, requested by the prosecution rather than the defense, cite significant prosecutorial errors, marking yet another setback in the government’s prolonged efforts to bring justice in this sprawling scandal.
U.S. District Judge Janis Sammartino, who presided over the hearing, lamented the unraveling of the case, labeling it an “embarrassment to the government.” She attributed the dismissals to “significant misconduct” by prosecutors, including the withholding of crucial information from defense attorneys. “Misconduct started the unraveling of this case,” Judge Sammartino said, describing the situation as “extremely unfortunate” and “all the government’s making.”
The officers involved—retired U.S. Navy officers Donald Hornbeck, Robert Gorsuch, and Jose Luis Sanchez, retired U.S. Marine Corps Col. Enrico DeGuzman, and U.S. Navy officer Stephen Shedd—had initially pleaded guilty to various felonies tied to their illicit dealings with Francis. However, Judge Sammartino allowed Hornbeck, Gorsuch, Sanchez, and DeGuzman to plead guilty to a misdemeanor charge of disclosing information, while Shedd’s entire case was thrown out.
Leonard Francis, who owned and operated Singapore-based Glenn Defense Marine Asia Ltd., was notorious for his lavish spending and bribes, which included cash, luxury dinners, hotel stays, and sex parties. Francis used these tactics to ingratiate himself with Navy officials, who in return provided proprietary information and steered contracts to his company, enabling him to defraud the Navy out of at least $35 million.
The breadth of the corruption scandal, which spanned from 2006 to 2014, was substantial. Dozens of Navy officers were implicated, and Francis cooperated extensively with prosecutors following his arrest in 2013. However, the case began to falter under the weight of prosecutorial missteps. Judge Sammartino had previously criticized Assistant U.S. Attorney Mark Pletcher for “flagrant misconduct” in withholding evidence from defense lawyers, a key factor in her decision to vacate convictions.
During the hearing, Judge Sammartino stressed that her decision did not exonerate the defendants of their actions but was necessary to rectify disparities created by the prosecutorial errors. “While not a perfect resolution, it is accepted to minimize disparities in this case,” she stated. The judge emphasized that leaving the felony pleas intact would have resulted in harsher penalties for these defendants compared to others who went to trial and had their convictions dismissed last year due to similar prosecutorial issues.
The government’s latest filing admitted that the extent of prosecutorial issues might affect more than the nine defendants whose convictions have already been dismissed. “The government is committed to ensuring all the defendants receive any redress that is owed them for the prosecution issues,” wrote First Assistant U.S. Attorney Peter Ko. Prosecutors are now reviewing other cases to determine if additional defendants are eligible for relief.
The officers involved had previously agreed to pay restitution totaling more than $285,000 as part of their felony pleas. Under the new misdemeanor plea deals, they were each ordered to pay a $100 fine with no time in custody and no restitution requirements. In their admissions, the officers recounted various ways they had aided Francis—ranging from sharing ship schedules to influencing contract decisions.
Notably, Stephen Shedd warranted a full dismissal due to his cooperation and testimony during trials. “We do not think it is fair or just for this defendant who acknowledged his guilt and testified publicly against peers of similar or greater culpability to be penalized more harshly or the same,” Ko wrote.
Relevant articles:
– Judge dismisses felony convictions of 5 retired military officers in US Navy bribery case, Stripes, 05/23/2024
– ‘Embarrassment to the government’: Judge slams prosecutors for unraveling of ‘Fat Leonard’ case, The San Diego Union-Tribune, 05/22/2024
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